Global equity funds draw second weekly inflow on AI rally, tariff delay
(Reuters) -Global equity funds drew inflows for a second consecutive week in the seven days to July 9, boosted by a rally in AI-linked stocks and expectations that pushing the U.S. tariff rollout to August could positively affect ongoing trade talks.
Investors purchased a net $10.21 billion in global equity funds during the week to July 9, LSEG Lipper data showed, down sharply from the previous week’s $37.54 billion.
U.S. President Donald Trump postponed his tariff deadline to August 1 to allow time for negotiations, but simultaneously announced rates as high as 50% with a minimum blanket tariff of 15% to 20% after the deadline.
Investors bought approximately $5.21 billion worth of European equity funds, the most since May 21. U.S. and Asian funds, meanwhile, witnessed net inflows of $2.1 billion and $426 million, respectively.
The sectoral funds segment attracted a net $2.21 billion, a second weekly inflow in a row. The tech sector saw a robust $1.8 billion in weekly net purchases. In contrast, the healthcare sector saw nearly $1.06 billion weekly net sales.
Global bond funds stayed in demand for a 12th straight week, drawing a hefty $16.83 billion.
Euro-denominated bond funds drew in a combined $4.36 billion, the largest weekly inflow in four weeks. Short-term and high-yield bond funds also saw net purchases worth a noticeable $3.32 billion and $967 million, respectively.
Money market funds secured approximately $44.97 billion in a second-successive week of robust net purchases.
In the commodities space, gold and precious metal funds saw net inflows of $338 million with investors extending net purchases into a seventh straight week. Energy funds, meanwhile, had a net $86 million weekly outflow.
Emerging market assets rose in popularity during the week as investors pumped $3.67 billion into equity funds, the largest amount since October 9, 2024. Bond funds also saw a net $2.55 billion weekly inflow, data for a combined 29,643 funds showed.
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